Commerce and Finance Adviser Dr Salehuddin Ahmed on Sunday said Bangladesh has the enormous opportunity to make the leather and footwear items very good products in the export basket.
"Leather sector is very prospective for export diversification. For export diversification the leather sector is a very good item. This sector has prospects and problems as well," he said while briefing reporters after holding a meeting with the leaders of Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association and Bangladesh Tanners Association at his Finance Ministry office.
He mentioned that they have discussed various issues related to the prospects and problems of the leather sector.
"We have discussed all the problems. Why they have been shifted to Savar, what the environmental situation is in there, their financing (problems), their certification to export leathers, we have discussed all these points," he said.
In the meeting, the adviser said, they have discussed everything to make these leather and footwear items big export products for the country. "And this sector has every possibility for this upgrade," he said.
The adviser also mentioned that leather is a raw material and it is locally produced. "This is a big advantage for us."
Bangladesh leather industry comprises the components of tanning and finishing, footwear and footwear components, leather accessories and leather goods, for example, bags, wallets, belts, accessories, etc.
Products such as fabric-based footwear are also now being produced in Bangladesh for global retailers.
International brands like Adidas, Aldo, Timberland, Marks & Spencer, Steve Madden, Esprit, ABC Mart, Nike and K-Mart, Sears etc are sourcing leather goods or footwear from Bangladesh.
European countries are the main markets for leather and leather products in Bangladesh. However, Bangladesh also exports to the United States, Japan, UK, China and a few other countries.
The leather sector of Bangladesh includes 200 tanneries, 3,500 MSMEs, 2500 footwear making units and 90 large firms. Bangladesh meets the demand for about 10 per cent of the world's total leather market.
Recently, a sustainable 205 industrial units Tannery Estate has been developed with CETP and STP and the production of eco-friendly leather and linkage industries-packing, lasts, adhesives, outsoles are growing rapidly.
The Bangladesh government has taken many steps to upgrade the industry. The government has already set up a modern leather industrial estate in Savar and two more leather industrial parks will be set up in Chattogram and Rajshahi for unlocking the huge potentials of the country's leather sector.
Tanneries of the Hazaribagh area have been shifted to a modern environment-friendly tannery estate in Savar. Tanners have now the option to build their industrial unit by applying modern concepts. They can add updated hydraulic and pneumatic machines, apply the latest production processes, and use technology upgrades.
